The company said unsatisfactory performance in its hotel-ownership business segment would result in a net loss for the year 2000, the first annual loss in Buckhead America�s eight-year history.  Losses are expected to continue in the seasonally weak first half of this year, but the company will be solidly profitable in the second half and for the full year 2001, Buckhead America said.

Last November, Buckhead America said that while its franchising operations for the Country Hearth Inn limited-service lodging system continued to grow profitably, it was disappointed with hotel-ownership results and was evaluating corrective measures.  For the first nine months of 2000 Buckhead America reported a loss of $201,816 on revenue of $21.3 million.

�We are fixing our hotel ownership problems in a manner that will return Buckhead America to profitability quickly and that will put us on a solid footing for future growth,� said Douglas C. Collins, chairman, president and chief executive officer.  Buckhead America also said it installed new management at The Lodge Keeper Group Inc., its hotel management subsidiary, which will focus on sales, marketing and training.  Lodge Keeper�s corporate office also was relocated to Buckhead America�s Atlanta headquarters from Ohio to increase communication and reduce costs.

�We are developing a sales and marketing culture at Lodge Keeper that will focus on increasing company fee income from owned and managed properties and increasing profits for third party owners,� said Collins.

In the hotel-ownership segment, Buckhead America plans to sell up to 10 hotels within six months.  Four properties already are under contract, with completion of three sales expected within 30 days.  The hotels would continue to operate under the Country Hearth Inn banner.  The hotel sales are designed to free capital for growth and, in the aggregate, aren�t expected to result in meaningful investment gains or losses.

Buckhead America said it remains in a strong financial position and is confident its franchising and hotel management activities can grow profitably in the future.
�Despite fierce competition in the limited-service hotel market, awareness of the Country Hearth Inn brand among travelers and potential franchisees continues to grow,� said Collins.  �We currently have 56 hotels in the franchising system and we expect to add 15 to 20 more properties this year.�

Collins added, �Lodge Keeper�s management portfolio also should grow by 15 to 20 properties this year from its current 59 hotels under management.�

Buckhead America is a diversified hospitality services company whose holdings include the Country Hearth Inn franchise system, The Lodge Keeper Group and 33 additional hotels owned, leased and/or managed.

Buckhead America common shares trade on the NASDAQ National Market System under the stock symbol �BUCK.�

Certain statements contained in this release are forward-looking statements based on current expectations as defined under the Private Securities Litigation Reform Act of 1995.